Market cap is an important measure of the performance of a company's stock, as opposed to the company itself. It is not uncommon for a company's market cap to greatlymany exceedtimes above the comapny's "[[book value]]" of the company, ie the company may trade for "highor [[multiplesearnings]]" to valuation measures like earnings or bok value, if there's anticipation of earnings growth. For instance, in the late [[1990s]] the shares of [[internet]]-related companies was highly valued by the market, and tiny companies with almost no sales, but high growth, had market caps of billions of [[dollar]]s.
The only reason for a "high" market cap is anticipation of future growth in cash flow from operations.
